Managing across cultures Q Consider the importance of cultural differences for people working across cultures Q Discuss the conflict between globalization and localization Lead-in + Whatare the advantages and disadvantages of a multinational company adapting its management methods to the local culture in each country in which it operates? * Towhat extent is the culture of your country similar enough to those of neighbouring countries to have the same management techniques? Ordo they have very different attitudes to work, hierarchy, organization, and so on? Ifso, what are these differences? Listening 1: Managers and authority Listen to two MBA students at the Judge Business School talking about cultural differences, and answer the questions. 1 What concepts does Krishna say are important in management in Singapore? 2 How does this differ from the European countries Krishna Krishna Srinivasan mentions? . from Malaysia| 3 From what Carlo says, how similar is Italy to Switzerland and eo aTzay Britain? + Inyour country, what gains respect within an organization, long Carlo de Stefanis service or achievement? (from Italy) + Cana young, dynamic, aggressive manager with an MBA rise quickly in the hierarchy? Reading: Managing across cultures Richard Lewis is well known in the field of cross-cultural communication and the author of When Cultures Collide: Managing Successfully Across Cultures and The Cultural imperative: Global Trends in the 21st Century. Read about his model of three types of cultures, and answer the questions. Managing a global multinational company would obviously be much simpler if it required only one set of corporate objectives, goals, policies, practices, products and services. But local differences — cultural habits, beliefs and principles specific to each country or market — often make Richard Lewis this impossible. The conflict between globalization and localization has Jed to the invention of the word ‘glocalization’. Companies that want to be successful in foreign markets have to be aware of the local cultural characteristics that affect the way business is done. Richard Lewis has classified different cultures according to three 26 Unit 4 Managing across cultures‘poles’ representing different types of behaviour. Businesspeople in ‘linear-active’ cultures such as Britain, the USA and Germany are generally organized and rational, try to act logically rather than emotionally, plan in advance, and like to do one thing at a time. They believe in Management respecting rules, regulations and contracts, and so are what the Dutch theorist Fons Trompenaars calls ‘universalists’ ~ they think rules apply to everybody. They are not afraid of confrontation ‘ut will compromise when necessary to achieve a deal. They are essentially individualist. Cultural Types: The Lewis Model nly, Portuga, ‘pein, re Russia, Slovakia France, Potend, mungary Belgium, srt Australi, Denmark, land ‘Ausra, czech nepubl Netherlands, Norway Switaerand reg -mult-active-war, sccommacsting Comeremser god steer sub-Saharan nat Indonesia, Malaysia, Kore, thaland 1K sweden Finland canada Singepore Teiwen, Japan From Richard D. Lewis, The Cultural impera ‘Multi-active cultures’ in Southern Europe, Latin ‘America and Africa attach more importance to feelings, emotions and intuition, and relationships and connections. People like to do many things at the same time; they are flexible, good at changing plans and happy to improvise. They believe in social or company hierarchy, and respect status. ‘They are essentially collectivist, and also what ‘Trompenaars calls ‘particularist’ ~ they believe that personal relationships and friendships should take precedence over niles and regulations. Comprehension tive: Global Trends in the 21st Century Warmouth, Maine: Intercultural Press, 2003) People in ‘reactive cultures’ in Asia prefer to listen to and establish the other's position, and then react to it. They try to avoid confrontation, and don’t want to ‘lose face’ or cause someone else to. They rarely interrupt speakers and often avoid eye contact. They try to formulate approaches which suit both parties. Other countries have cultures which show combined characteristics of two of these poles, and can be represented along the sides of a triangle. 1 Whyisit important for companies to be aware oflocal cultures? - 2 What are the differences between individualists and collectivists? 3. Whois more likely to think: “'ll|et them speak first.” 4 Who is more likely to say, about other people: “They can’t be trusted because | they will always help their friends or family’ —universalists or particularists? 5 Whois more likely to say: ‘Oh, you can’t trust them; they wouldn't even help a friend’? Mani cultures Unit 4 27» Vocabulary Match the words in the box with the definitions below. collectivist compromise —_ confrontation” improvise interrupt intuition _logic 1 an invented word combining worldwide and regional concerns 2 thought based on reason and judgement rather than feelings and emotions 3 a face-to-face disagreement or argument 4 reducing demands or changing opinions in order to agree 5 understanding or knowing without consciously using reason 6 people of influence or importance with whom you are associated 7 todo something when necessary without having already planned it 8 respect, prestige or importance given to someone 9 believing that the group Is more important than the individual 10. tobe humiliated or disrespected in public 11 to cut into someone else’s turn to speak 12 looking directly at the people you are talking or listening to Discussion: Managing across cultures 1 Towhat extent do you agree that itis possible to sum up national characteristics in a few words? Is there usually some (or a lot of) truth in such stereotypes? Or, on the contrary, do you find such stereotyping dangerous? 2 Ifyour country is not shown on the diagram, where do you think it should be situated? If your country is shown, do you agree? 3 Would you say that you, personally, were individualist or collectivist? Particularist or universalist? 4 What about the majority of people in your country? 5 Which of the following working practices would be effective or damaging in your country? Why? a the principle of ‘pay-for-performance’ for sales representatives — the more they sell, the more they get paid b having a competition for the ‘Employee of the month’ ¢ having a matrix managernent system d extensive teamwork Writing: You and your influences Write a short text (100-150 words) explaining which five of the factors listed below you think have had the most influence on your behaviour and attitudes. Put them in order of priority. + Nature: your genes or DNA, the characteristics you + Primary or secondary school, teachers, and what inherited from your parents and were born with, you learnt your emotional and physical make-up + Higher education: college, university, teachers, + Your family environment in early life colleagues, the subjects you studied (or are + Your friends and social life, the things you doin your _ studying) free time * Yourjob 28 Unit 4 Managing across culturesa Management + The culture of your particular company + The characteristics that are considered typical + Your colleagues: the people in your team or of your country, arising from geography, climate, department history, religion, the political, social and economic + Your colleagues: the kind of people who workin system, and so on your specific area of work Then in groups, report on your choices and explain them. Listening 2: Managers and cultural diversity What would happen if the world became truly globalized, and everyone travelled, or worked with people from different cultures? Listen to three MBA students at the Judge Business School, and answer the questions. 1. What does Lakshmi describe as an advantage of international management schools? 2 Why does Janine say that American businesspeople now have different attitudes? 3 What skill or ability does Janine say allows people to be more self-aware? 4 What expression does Carlo use to describe corporations becoming truly international? 5 What does Carlo say happens if companies move alot of executives and managers around? Lakshmi Jaya (rom India) Janine George (from 6 Whatis the saying or proverb that Janine quotes? What does it South Africa) mean? 7 What is the Japanese version of this saying that she heard? What does it mean? Carlo de Stetanis (from Italy) Role play: Welcoming American colleagues You work in a multinational organization. You The document could include information have been given the responsibility of mentoring _ about working practices in your office, as two American colleagues who are coming to well as practical information about your city work in your office. You have been asked to or country, including advice about transport, help them settle in to their new workplace by and conventions such as tipping in taxis and preparing a short document outlining the general restaurants. practices they can expect to find when they are In groups discuss what should go in this living and working in your country. document and then present these ideas to the rest of the class.